Alternative Finance and the Rise of the Fintech Unicorn

2017 is set to be the year of fintech resilience. Investment banking firm G.P. Bullhound’s new report on alternative finance explores how despite political and economic uncertainty last year, most prominently in the US and the UK, financial technology remained buoyant and will continue to do so this year on a global scale.

China’s fintech sector certainly boomed last year especially after Alibaba’s payments company Ant Financial set records with a $4.5 billion funding round. The impact of Brexit is yet to be seen on the UK and Europe as a whole, but investors are still seeing the potential for financial technology in the region, according to the report. G.P. Bullhound highlights that the UK could be described as a standout leader because of three fintech unicorns, or companies that are valued at over $1 billion: Funding Circle, Paysafe and Transferwise.

‘We expect 2017 to be another year of resilience for fintech funding in Europe and we have already seen several high-profile capital raises announced: Funding Circle, iZettle, Atom Bank and Monzo. We think these will set the pace for the rest of the year. We expect VC investors to continue to back established players and also to increase investment in new technologies, such as artificial intelligence and digital ledger, and new business models, such as digital banking,’ the report read.